MOSCOW, May 28 (Reuters) - Russian stocks and the rouble fell further on Wednesday morning, after steep falls the previous day, as concerns about the unresolved conflict in Ukraine continued to weigh.
At 0715 GMT the rouble-denominated MICEX index
On Monday the indexes hit their highest levels since February after the landslide election win in Ukraine of new president Petro Poroshenko. But they have since fallen back some 3-4 percent after violent clashes in eastern Ukraine in which dozens were killed.
"The crucial factors influencing trades on Wednesday as before remain the situation in Ukraine and the resolution of 'gas questions'," Veles Capital analyst Yulia Frumkina said in a note. "The general news background creates conditions for a continuing downward correction."
Russia and Ukraine remain at loggerheads over gas prices, with Russia threatening to cut off deliveries to Ukraine on June 3 if Kiev fails to pay in advance for next month's deliveries.
Fears that the conflict in eastern Ukraine could drag in Russia, provoking tougher western sanctions that would damage Russia's economy, have been the major factor hurting Russian asset prices in recent months.
"We don't expect a quick solution of the crisis, however Moscow will probably keep a distance from the conflict - otherwise Russia will encounter the threat of economic isolation and an economic slump, which is hardly part of the Kremlin's strategic goals," BCS analyst Mark Bradford said in a note.
The rouble was weaker on Wednesday, also weighed down by the impending end of the monthly tax period, which had helped support the currency. Russian companies will pay around 190 billion roubles in tax on profits on Wednesday, the final day of monthly taxes.
The rouble was 0.24 percent weaker at 34.48 against the dollar
It was down 0.27 percent to 40.14 against the dollar-euro basket.
For rouble poll data see
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(Reporting By Jason Bush; Editing by Hugh Lawson)
((jason.bush@thomsonreuters.com)(+7 495 775 1242)(Reuters Messaging: jason.bush.reuters.com@reuters.net))
Keywords: RUSSIA MARKETS/




















